Positive Persimmon looks to tap into ‘Burnham bounce’ on housebuilding

Firm lifts outlook, saying it is well placed to benefit from PM’s focus on new homes despite cost pressures from Iran war The UK housebuilder Persimmon has lifted its outlook for the full year, saying it is “well-placed” to benefit from the prime minister Andy Burnham’s policy agenda, despite growing costs linked to the Iran war. Despite rising cost pressures, the company now plans to complete 12,500 new homes by year-end, which would be at the upper reach of its previous guidance. That was despite “challenging” market conditions, given the rise in building costs, and with many consumers still struggling to afford homes. Persimmon added that cost pressures were likely to grow in coming months. “We expect additional inflationary pressure in 2027 including as a result of the conflict in the Middle East,” the company said in a market update. However, the housebuilder said that even its own focus on low costs and its efforts to make the business more efficient might not be enough to fully offset inflation.

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